Multi - Party Energy Management of Microgrid with Heat and Electricity Coupled Demand Response

Combined heat and power (CHP) based Microgrids (MG) are quite popular. They can generate electricity based on electric or thermal demand. A framework of multi-party energy management is proposed in this paper with heat and electricity demand for the CHP-MG. Paper also delves on energy management of MG provided by CHP and photovoltaic (PV) prosumers. A model of Microgrid Operator (MGO) is developed to determine the operational profit of CHP system where MGO acts as a leader and prosumers are the followers. The main objective of MGO is economic operation of MG or to minimize the net cost of generation from Distributed energy resources and purchasing energy from the grid. It is established by simulation that the CHP system operating in hybrid mode by selecting following electric load (FEL) mode and following thermal load (FTL) mode dynamically the most economic operation of CHP is achieved. A dealing process between MGO and prosumers is also modeled. Lastly, a case study with CHP -MG and 6 building users are presented to verify the effectiveness of the model and to show the economic benefit of having the MGO along with the prosumers in a MG.